DALLAS--(BUSINESS WIRE)--MetroPCS Communications, Inc. (NYSE: PCS), the nation’s leading provider
of no annual contract, unlimited, flat-rate wireless communications
service, today announced financial and operational results for the
quarter ended March 31, 2012. MetroPCS reported quarterly Adjusted
EBITDA of $262 million for the first quarter 2012 and ended the quarter
with approximately 9.5 million subscribers.

Roger D. Linquist, Chairman and Chief Executive Officer of MetroPCS,
said, “Our first quarter results highlight our continued focus on
getting affordable 4G LTE smartphones into the hands of our customers.
We upgraded 16% of our subscriber base, 40% of which went from a feature
phone to a smartphone, and we reported churn of 3.1%, matching the
all-time low for the Company. However, the significant number of
upgrades at a higher promotional handset cost during the quarter
resulted in higher costs and as a result both Adjusted EBITDA and
Adjusted EBITDA margins were pressured significantly.

“The wireless industry is rapidly moving towards 4G LTE and while the
first quarter presented us with challenges, we believe we remain
well-positioned for long-term growth and success. In wireless, speed
does matter and our 4G LTE network will provide a significant
enhancement in the customer experience when compared to our current 3G
CDMA experience. Our service plans offer the predictability,
affordability and flexibility our customers have come to expect, and
with all taxes and regulatory fees included, and no contract, we believe
we continue to offer the best deal in town,” Linquist concluded.

(1)For a reconciliation of non-GAAP financial measures,
please refer to the section entitled “Definition of Terms and
Reconciliation of non-GAAP Financial Measures” included at the end of
this release.

(2)Number of covered POPs covered by MetroPCS Communications,
Inc. network increased 2.5 million from 3/31/11 to 3/31/12 to 102
million.

Quarterly Consolidated Results

Consolidated service revenues of approximately $1.2 billion for the
first quarter of 2012, an increase of $109 million, or 10%, when
compared to the prior year’s first quarter.

Income from operations decreased $47 million, or 32%, for the first
quarter of 2012 when compared to the prior year’s first quarter.

Net income decreased $35 million, or 63%, for the first quarter of
2012 when compared to the prior year’s first quarter.

Adjusted EBITDA of $262 million decreased by $23 million for the first
quarter of 2012, or 8%, when compared to the prior year’s first
quarter.

Average revenue per user (ARPU) of $40.56 for the first quarter of
2012 represents an increase of $0.14 when compared to the first
quarter of 2011. The increase in ARPU was primarily attributable to
continued demand for our Wireless for All and 4G LTE service
plans offset by an increase in family plan penetration from 35% of our
customer base as of March 31, 2011 to 44% of our customer base as of
March 31, 2012.

The Company’s cost per gross addition (CPGA) of $235 for the first
quarter of 2012 represents an increase of $78 when compared to the
prior year’s first quarter. The increase is primarily driven by
increased promotional activities and lower gross additions as compared
to the three months ended March 31, 2011.

Cost per user (CPU) increased to $22.87 in the first quarter of 2012,
or a 16% increase over the first quarter of 2011. The increase in CPU
is primarily driven by the increase in retention expense for existing
customers, costs associated with our 4G LTE network upgrade and
roaming expenses associated with Metro USA. During the quarter we
experienced $7.13 in CPU directly related to handset upgrades compared
to $4.60 in the prior year’s first quarter.

Churn decreased 60 basis points from 3.7% to 3.1%, when compared to
the fourth quarter of 2011, and remained flat when compared to the
first quarter of 2011. The sequential decrease in churn was primarily
driven by continued investment in our network, aggressive retention
programs, and normal seasonal trends.

Financial Guidance for 2012

For the year ending December 31, 2012, MetroPCS today reaffirms its
prior guidance, originally provided on February 23, 2012. MetroPCS
currently expects to incur capital expenditures in the range of $900
million to $1.0 billion on a consolidated basis for the year ending
December 31, 2012.

MetroPCS Conference Call Information

MetroPCS Communications, Inc. will host a conference call to discuss its
First Quarter 2012 Earnings Results at 9:00 a.m. Eastern Time (ET) on
Thursday, April 26, 2012.

The conference call will be broadcast live via the Company’s Investor
Relations website at investor.metropcs.com.
A replay of the webcast will be available on the website beginning at
approximately 12:30 p.m. ET on April 26, 2012.

A replay of the conference call will be available for one week starting
shortly after the call concludes and can be accessed by dialing
888-203-1112 (toll free) or 719-457-0820 (international). The passcode
required to listen to the replay is 5183046.

All registered marks, including but not limited to, Wireless for All,
are registered service marks of MetroPCS Wireless, Inc. All rights
reserved. All other company and product names mentioned may be
trademarks or registered marks of the respective companies with which
they are associated.

About MetroPCS Communications, Inc.

Dallas-based MetroPCS Communications, Inc. (NYSE: PCS) is a provider of
no annual contract, unlimited wireless communications service for a
flat-rate. MetroPCS is the fifth largest facilities-based wireless
carrier in the United States based on number of subscribers served. With
Metro USA(SM), MetroPCS customers can use their service in areas
throughout the United States covering a population of over 280 million
people. As of March 31, 2012, MetroPCS had approximately 9.5 million
subscribers. For more information please visit www.metropcs.com.

Forward-Looking Statements

This release includes “forward-looking statements” for the purpose of
the “safe harbor” provisions within the meaning of the Private
Securities Litigation Reform Act of 1995, as amended, and rule 3(b)-6
under the Securities Exchange Act of 1934, as amended. Any statements
made in this release that are not statements of historical fact,
including statements about our beliefs, opinions, projections, and
expectations, are forward-looking statements and should be evaluated as
such. Forward-looking statements include information concerning the
reasons for the Company’s operational and financial results, our planned
additions to and timing of availability of handsets and the prices for
such handsets, our ability to drive profitable growth, our ability to
build on our existing momentum, our guidance on capital expenditures for
2012, our views on the causes of increased churn, and statements that
may relate to our plans, objectives, strategies, goals, future events,
future revenues or performance, capital expenditures, financing needs,
and other information that is not historical information. These
forward-looking statements often include words such as “anticipate,”
“expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,”
“targets,” “views,” “becomes,” “projects,” “should,” “would,” “could,”
“may,” “will,” “forecast,” and other similar expressions.

These forward-looking statements are based on reasonable assumptions at
the time they are made, including our current expectations, plans,
beliefs, opinions and assumptions in light of our experience in the
industry, as well as our perceptions of historical trends, current
conditions, expected future developments and other factors we believe
are appropriate under the circumstances and at such times.
Forward-looking statements are not guarantees of future performance or
results. Actual financial results, performance or results of operations
may differ materially from those expressed in the forward-looking
statements. Factors that may materially affect such forward-looking
statements include, but are not limited to:

the highly competitive nature of our industry and changes in the
competitive landscape;

the current economic environment in the United States; disruptions to
the credit and financial markets in the United States; and
contractions or limited growth on consumer spending as a result of the
uncertainty in the United States economy;

the availability of additional spectrum, our ability to secure
additional spectrum, or secure it at acceptable prices, when we need
it;

our ability to manage our networks to deliver the services, content,
service quality and speed our customers expect and demand and to
maintain and increase capacity of our networks and business systems to
satisfy the demands of our customers and the demands placed by devices
on our networks;

our ability to adequately defend against suits filed by others and to
enforce or protect our intellectual property rights;

our capital structure, including our indebtedness amounts and the
limitations imposed by the covenants in our indebtedness and maintain
our financial and disclosure controls and procedures;

our inability to attract and retain key members of management and
train personnel;

our reliance on third parties to provide distribution, products,
software content and services that are integral, used or sold by to
our business and the ability of our suppliers to perform, develop and
timely provide us with technological developments, products and
services we need to remain competitive;

possible disruptions or intrusions of our network, billing,
operational support, and customer care systems which may limit or
disrupt our ability to provide service or cause disclosure of our
customer’s information and the associated harm to our customers, our
systems, and our goodwill;

governmental regulation affecting our services and changes in
government regulation, and the costs of compliance and our failure to
comply with such regulations; and

other factors described or referenced from time to time in our
quarterly report on Form 10-Q, for the quarter ended March 31, 2012,
to be filed on or before May 10, 2012, as well as subsequent quarterly
reports on Form 10-Q, or current reports on Form 8-K, all of which are
on file with the SEC and may be obtained free of charge through the
SEC’s website http://www.sec.gov,
from the Company’s website at www.metropcs.com
under the investor relations tab, or from the Company by contacting
the Investor Relations department.

The forward-looking statements speak only as to the date made, are based
on current assumptions and expectations, and are subject to the factors
above, among other things, and involve risks, uncertainties, events,
circumstances, and assumptions, many of which are beyond our ability to
foresee, control or predict. You should not place undue reliance on
these forward-looking statements, which are based on current assumptions
and expectations and speak only as of the date of this release. All
future written and oral forward-looking statements attributable to us or
persons acting on our behalf are expressly qualified in their entirety
by our cautionary statements. MetroPCS Communications, Inc. does not
intend to, is not obligated to, and does not undertake a duty to, update
any forward-looking statement to reflect the occurrence of events or
circumstances after the date of this release, except as required by law.
The results for the first quarter of 2012 may not be reflective of
results for any subsequent period. MetroPCS does not plan to update nor
reaffirm guidance except through formal public disclosure pursuant to
Regulation FD.

MetroPCS Communications, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share and per share information)

(Unaudited)

March 31, 2012

December 31,2011

CURRENT ASSETS:

Cash and cash equivalents

$

1,886,238

$

1,943,282

Short-term investments

329,911

299,972

Inventories

252,158

239,648

Accounts receivable (net of allowance for uncollectible accounts of
$559 and $601 at March 31, 2012 and December 31, 2011, respectively)

80,973

78,023

Prepaid expenses

70,644

55,712

Deferred charges

104,777

74,970

Deferred tax assets

7,215

7,214

Other current assets

35,434

44,772

Total current assets

2,767,350

2,743,593

Property and equipment, net

4,007,177

4,017,999

Restricted cash and investments

2,076

2,576

Long-term investments

6,319

6,319

FCC licenses

2,541,657

2,539,041

Other assets

184,628

173,403

Total assets

$

9,509,207

$

9,482,931

CURRENT LIABILITIES:

Accounts payable and accrued expenses

$

452,025

$

512,346

Current maturities of long-term debt

34,610

33,460

Deferred revenue

261,655

245,705

Other current liabilities

29,743

25,212

Total current liabilities

778,033

816,723

Long-term debt, net

4,726,077

4,711,021

Deferred tax liabilities

831,745

817,106

Deferred rents

124,784

120,028

Other long-term liabilities

90,792

90,453

Total liabilities

6,551,431

6,555,331

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ EQUITY:

Preferred stock, par value $0.0001 per share, 100,000,000 shares
authorized; no shares of preferred stock issued and outstanding at
March 31, 2012 and December 31, 2011

—

—

Common stock, par value $0.0001 per share, 1,000,000,000 shares
authorized, 363,128,204 and 362,460,395 shares issued and
outstanding at March 31, 2012 and December 31, 2011, respectively

36

36

Additional paid-in capital

1,795,586

1,784,273

Retained earnings

1,180,422

1,159,418

Accumulated other comprehensive loss

(9,549

)

(9,295

)

Less treasury stock, at cost, 778,662 and 602,881 treasury shares at
March 31, 2012 and December 31, 2011, respectively

(8,719

)

(6,832

)

Total stockholders’ equity

2,957,776

2,927,600

Total liabilities and stockholders’ equity

$

9,509,207

$

9,482,931

MetroPCS Communications, Inc. and Subsidiaries

Condensed Consolidated Statements of Income and Comprehensive
Income

(in thousands, except share and per share information)

(Unaudited)

For the Three Months EndedMarch 31,

2012

2011

REVENUES:

Service revenues

$

1,158,779

$

1,050,217

Equipment revenues

117,811

144,160

Total revenues

1,276,590

1,194,377

OPERATING EXPENSES:

Cost of service (excluding depreciation and amortization expense of
$132,223 and $111,828 shown separately below)

Reclassification adjustment for gains on available-for-sale
securities included in net income, net of tax of $12 and $65,
respectively

(25

)

(103

)

Reclassification adjustment for losses on cash flow hedging
derivatives included in net income, net of tax benefit of $1,448 and
$1,780, respectively

2,887

2,877

Total other comprehensive (loss) income

(254

)

3,473

Comprehensive income

$

20,750

$

59,851

Net income per common share:

Basic

$

0.06

$

0.16

Diluted

$

0.06

$

0.15

Weighted average shares:

Basic

362,718,613

356,988,270

Diluted

364,283,160

361,406,194

MetroPCS Communications, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

For the Three Months Ended March 31,

2012

2011

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

21,004

$

56,378

Adjustments to reconcile net income to net cash provided by
operating activities:

Depreciation and amortization

152,819

128,695

(Recovery of) provision for uncollectible accounts receivable

(107

)

166

Deferred rent expense

4,792

4,094

Cost of abandoned cell sites

423

56

Stock-based compensation expense

10,156

11,284

Non-cash interest expense

1,831

1,993

Loss (gain) on disposal of assets

1,120

(105

)

Gain on sale of investments

(37

)

(168

)

Accretion of asset retirement obligations

1,588

1,313

Deferred income taxes

14,357

32,257

Changes in assets and liabilities:

Inventories

(12,510

)

(124,800

)

Accounts receivable, net

(2,844

)

1,250

Prepaid expenses

(14,904

)

(10,306

)

Deferred charges

(29,808

)

(18,679

)

Other assets

10,423

8,645

Accounts payable and accrued expenses

(39,803

)

28,083

Deferred revenue

15,950

17,542

Other liabilities

2,454

615

Net cash provided by operating activities

136,904

138,313

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property and equipment

(144,016

)

(187,032

)

Change in prepaid purchases of property and equipment

(7,352

)

(10,371

)

Proceeds from sale of property and equipment

477

573

Purchase of investments

(192,415

)

(162,378

)

Proceeds from maturity of investments

162,500

200,000

Change in restricted cash and investments

500

—

Acquisitions of FCC licenses and microwave clearing costs

(2,584

)

(1,528

)

Cash used in asset acquisitions

—

(8,000

)

Net cash used in investing activities

(182,890

)

(168,736

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Change in book overdraft

(2,830

)

52,887

Proceeds from debt issuance, net of discount

—

497,500

Debt issuance costs

—

(6,830

)

Repayment of debt

(6,347

)

(5,250

)

Payments on capital lease obligations

(1,558

)

(2,940

)

Purchase of treasury stock

(1,888

)

(2,456

)

Proceeds from exercise of stock options

1,565

22,531

Net cash (used in) provided by financing activities

(11,058

)

555,442

(DECREASE) INCREASE CASH AND CASH EQUIVALENTS

(57,044

)

525,019

CASH AND CASH EQUIVALENTS, beginning of period

1,943,282

796,531

CASH AND CASH EQUIVALENTS, end of period

$

1,886,238

$

1,321,550

Definition of Terms and Reconciliation of Non-GAAP
Financial Measures

The Company utilizes certain financial measures and key performance
indicators that are not calculated in accordance with GAAP to assess our
financial and operating performance. A non-GAAP financial measure is
defined as a numerical measure of a company's financial performance that
(i) excludes amounts, or is subject to adjustments that have the effect
of excluding amounts, that are included in the comparable measure
calculated and presented in accordance with GAAP in the statement of
income or statement of cash flows, or (ii) includes amounts, or is
subject to adjustments that have the effect of including amounts, that
are excluded from the comparable measure so calculated and presented.

Average revenue per user, or ARPU, cost per gross addition, or CPGA,
cost per user, or CPU, and Adjusted EBITDA are non-GAAP financial
measures utilized by the Company's management to judge the Company's
ability to meet its liquidity requirements and to evaluate its operating
performance. Management believes that these measures are important in
understanding the performance of the Company's operations from period to
period, and although every company in the wireless industry does not
define each of these measures in precisely the same way, management
believes that these measures (which are common in the wireless industry)
facilitate key liquidity and operating performance comparisons with
other companies in the wireless industry. The following tables reconcile
the Company's non-GAAP financial measures with the Company's financial
statements presented in accordance with GAAP.

ARPU - The Company utilizes ARPU to evaluate its per-customer service
revenue realization and to assist in forecasting future service
revenues. ARPU is calculated exclusive of pass through charges that the
Company collects from its customers and remits to the appropriate
government agencies.

Average number of customers for any measurement period is determined by
dividing (a) the sum of the average monthly number of customers for the
measurement period by (b) the number of months in such period. Average
monthly number of customers for any month represents the sum of the
number of customers on the first day of the month and the last day of
the month divided by two. The following table reconciles total revenues
used in the calculation of ARPU to service revenues, which we consider
to be the most directly comparable GAAP financial measure to ARPU.

Three Months Ended March 31,

2012

2011

(in thousands, except average number of customers and ARPU)

Calculation of Average Revenue Per User (ARPU):

Service revenues

$

1,158,779

$

1,050,217

Less: Pass through charges

(16,504

)

(21,275

)

Net service revenues

$

1,142,275

$

1,028,942

Divided by: Average number of customers

9,388,465

8,485,035

ARPU

$

40.56

$

40.42

CPGA - The Company utilizes CPGA to assess the efficiency of its
distribution strategy, validate the initial capital invested in its
customers and determine the number of months to recover its customer
acquisition costs. This measure also allows management to compare the
Company's average acquisition costs per new customer to those of other
wireless broadband mobile providers, although other providers may
calculate this measure differently. Equipment revenues related to new
customers are deducted from selling expenses in this calculation as they
represent amounts paid by customers at the time their service is
activated that reduce the Company's acquisition cost of those customers.
Additionally, equipment costs associated with existing customers, net of
related revenues, are excluded as this measure is intended to reflect
only the acquisition costs related to new customers. The following table
reconciles total costs used in the calculation of CPGA to selling
expenses, which the Company considers to be the most directly comparable
GAAP financial measure to CPGA.

Three Months Ended March 31,

2012

2011

(in thousands, except gross customer additions and CPGA)

Calculation of Cost Per Gross Addition (CPGA):

Selling expenses

$

95,541

$

91,863

Less: Equipment revenues

(117,811

)

(144,160

)

Add: Equipment revenue not associated with new customers

94,069

75,234

Add: Cost of equipment

458,864

409,262

Less: Equipment costs not associated with new customers

(294,829

)

(192,202

)

Gross addition expenses

$

235,834

$

239,997

Divided by: Gross customer additions

1,001,636

1,525,880

CPGA

$

235.45

$

157.28

CPU - The Company utilizes CPU as a tool to evaluate the non-selling
cash expenses associated with ongoing business operations on a per
customer basis, to track changes in these non-selling cash costs over
time, and to help evaluate how changes in the Company's business
operations affect non-selling cash costs per customer. In addition, CPU
provides management with a useful measure to compare our non-selling
cash costs per customer with those of other wireless broadband mobile
providers. The Company believes investors use CPU primarily as a tool to
track changes in the Company's non-selling cash costs over time and to
compare the Company's non-selling cash costs to those of other wireless
broadband mobile providers, although other providers may calculate this
measure differently. The following table reconciles total costs used in
the calculation of CPU to cost of service, which we consider to be the
most directly comparable GAAP financial measure to CPU.

Less: Stock-based compensation expense included in cost of service
and general and administrative expense

(10,156

)

(11,284

)

Less: Pass through charges

(16,504

)

(21,275

)

Total costs used in the calculation of CPU

$

644,079

$

503,734

Divided by: Average number of customers

9,388,465

8,485,035

CPU

$

22.87

$

19.79

Adjusted EBITDA - The Company utilizes Adjusted EBITDA to monitor the
financial performance of its operations. This measurement, together with
GAAP measures such as revenue and income from operations, assists
management in its decision-making process related to the operations of
the company's business. Adjusted EBITDA has limitations as an analytical
tool and should not be considered in isolation or as a substitute for
income from operations, net income, or any other measure of financial
performance reported in accordance with GAAP. In addition, other
wireless carriers may calculate this measure differently.

The Company believes that analysts and investors use Adjusted EBITDA as
a supplemental measure to evaluate its overall operating performance and
that this metric facilitates the comparisons with other wireless
communications companies. The Company uses Adjusted EBITDA internally as
a metric to evaluate and compensate its personnel and management for
their performance, and as a benchmark to evaluate its operating
performance in comparison to its competitors. Management also uses
Adjusted EBITDA to measure, from period-to-period, the company's ability
to provide cash flows to meet future debt services, capital expenditures
and working capital requirements and fund future growth.

The following tables illustrate the calculation of Adjusted EBITDA and
reconcile Adjusted EBITDA to net income and cash flows from operating
activities, which we consider to be the most directly comparable GAAP
financial measures to Adjusted EBITDA.